In 2016 and 2017, millions of dollars flowed into energy-related blockchain projects, and the adoption of the technology continues to grow. As decentralized energy markets emerge, these opportunities for energy-specific blockchain applications are an important target for industry. According to a new report from Navigant Research, the total utility spending on blockchain-based platforms is expected to reach $3.7 billion by 2026.
“The expectations for blockchain in the energy sector are sky-high, helped along by hundreds of millions of dollars in venture capital investments and initial coin offering (ICO) fundraising,” says Johnathon de Villier, Research Analyst with Navigant Research. “However, the technology is still immature and unproven, and utility spending will grow at a much more measured pace.”
Future blockchain development in the utility industry depends on external technological factors, including the penetration of smart meters and networked charging infrastructure for electric vehicles. According to the report, blockchain adoption will not be disruptive until Internet of Things devices and communications technologies are integrated into compatible blockchain networks.
This report, Utility Blockchain Applications Market Overview, provides an overview of the developing market for blockchain-based platforms in the utilities industry. The study focuses on wholesale energy trading, certificates of origin, EV charging and integration, meter registration and switching, and transactive energy platforms. Global forecasts of utility spending, segmented by region and use case, extend through 2026. The report also describes the components of a blockchain architecture and explores the competitive landscape and key challenges that must be addressed before blockchain can be widely adopted in the energy sector.